EURUSD is reaching stability after skyrocketing last week.
The major currency pair is calming down after significant fluctuations last week. The current quote for the instrument is 1.1460.
With not too many macroeconomic statistics in the picture, investors have plenty of time to analyse and discuss the prospects of global monetary policies.
For example, there is an opinion about the ECB’s stance – the regulator is expected to start sounding more “hawkish” in March and support the Euro. The regulator’s hard-line stance may be based on the rising inflation expectations – the CPI behaviour does concern the ECB policymakers.
As for the US Fed, the thing that is discussed most is the number of rate hikes in 2022. Forecasts are completely different, from four to seven. A more aggressive strategy is supported by a confident growth of salaries: if the inflation rally influences many macroeconomic indicators, it will surely have an influence on salaries as well. In this case, the Fed will have to raise the rate in time and vary the rate adjustment.
Investors are also focused on the CPI reports from the US to be published later this week.
Source: Roboforex
